Retirement Fund and Zakaat

Wednesday, 25 August 2010 03:23
Ihsaan

Q: My father is retired and he took his pension fund and all his retirement money from goverment. Does he have to pay Zakat on this money?

A: If he was paying Zakaat previously, he will add the money he received from his pension fund to other assets and pay Zakaat on the whole amount on the date Zakaat is due. If he was NOT paying Zakaat before this, then he will only pay Zakaat on the pension fund after it has been in his possession for 12 Islamic months.